Deciding Between Holding or Selling IPOs

I enjoyed reading your story on Mainboard vs SME IPOs in the latest magazine issue, as I have a keen interest in IPOs. However, I’m often unsure whether to stay invested after being allotted an IPO or to sell for listing gains. Could you provide some guidance on this? - Divya Banerjee

Editor Responds: We appreciate your kind words of encouragement. When deciding between staying invested in an IPO or selling for listing gains, it depends on the company’s fundamentals and market conditions. If the company has strong financials, growth potential, and operates in a promising sector, staying invested might yield long-term returns. However, if the stock surges on listing due to market hype without clear indicators of sustainable growth, booking listing gains could be a safer strategy.

Investor sentiment towards a company can also be gauged based on the subscription levels of its IPO. Also, monitoring post-listing performance and market reactions also helps gauge future sentiment. Stay tuned to the DSIJ website for valuable insights in our IPO analysis section.